Debt Snowball vs. Avalanche Calculator

What is the debt snowball method?

The debt snowball method involves paying minimum payments on all debts except the smallest balance, which you attack with every extra dollar. When the smallest debt is paid off, you roll that payment to the next smallest. This method provides psychological wins and momentum, but typically costs more in interest than the avalanche method.

What is the debt avalanche method?

The debt avalanche method involves paying minimum payments on all debts except the one with the highest interest rate, which you pay off first. This method minimizes total interest paid and gets you debt-free faster mathematically, but requires patience as high-interest debts are often large balances that take longer to eliminate.

Which method should I choose?

Choose the snowball if you need motivation and quick wins to stay on track. Choose the avalanche if you're disciplined and want to minimize total interest paid. Research shows that people who need behavioral motivation do better with the snowball method even though it costs more. The best method is the one you'll actually stick to.

Should I use debt consolidation instead?

Debt consolidation (combining multiple debts into one lower-rate loan) can be more effective than either method if you qualify for a significantly lower interest rate. If you have 20%+ APR credit card debt and can qualify for a personal loan at 10%–15%, consolidation can save thousands. Use our debt consolidation calculator to compare.